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Tax Reforms, Debt Shifting and Tax Revenues: Multinational Corporations in Canada

  • Vijay Jog
  • Jianmin Tang

An analysis of Canadiancorporate income tax revenues during the 1984–94 periodshows a relative shifting of tax revenue shares between Canadianand foreign-controlled corporations, and a substantial changein the debt levels of foreign-controlled corporations, as wellas Canadian-based multinationals. We claim that these changesmay have been associated with the tax reforms undertaken by theUnited States and Canada in the mid-1980s resulting in the relativechange in the tax rates between the two countries. We also hypothesizethat if this difference persists and in Canadian-controlled corporationscontinue to aggressively expand abroad, the Canadian corporatetax base could experience further pressure. Copyright Kluwer Academic Publishers 2001

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Article provided by Springer & International Institute of Public Finance in its journal International Tax and Public Finance.

Volume (Year): 8 (2001)
Issue (Month): 1 (January)
Pages: 5-25

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Handle: RePEc:kap:itaxpf:v:8:y:2001:i:1:p:5-25
DOI: 10.1023/A:1008749415492
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